Peruvian biodiesel production is expected to reach 215 million liters this year, according to the United States Department of Agriculture (USDA) “Peru: Biofuels Annual” report.
This total represents an increase of 2% over the previous year's biodiesel volumes, as indicated in the November 21 report from the Foreign Agricultural Service's Global Agricultural Information Network.
Biodiesel consumption was expected to total 420 million liters in 2023, remaining at the same level as the previous year, but significantly higher than the 398 million liters recorded in 2021.
The USDA attributes this increase primarily to the post-COVID pandemic economic revival.
Challenges in biodiesel production in Peru
Peru uses crude palm oil (CPO) in the production of biodiesel. However, there is a challenge: biodiesel solidifies at low temperatures, clogging fuel filters and causing damage to engines. PetroPeru warns about this problem, limiting the mixing rate to B5. There has been no progress in the production of renewable diesel (HDRD) to overcome this restriction, reports the USDA.
Peru achieved the B5 mixing rate requirement in 2012.
Regarding biodiesel imports, they are expected to reach 190 million liters, approximately the same level as the previous year, according to the report.
Peruvian biodiesel imports cover codes 3826.00 (blends B30 to B100) and 2710.20 (petroleum oils with 1% to 30% biodiesel). These products enter Peru tax-free.
Products imported under code 2710.20, all from the USA, contain 10% of biodiesel, as highlighted in the report.
The USDA clarifies that if soybean oil biodiesel, common in the US, is used, it will perform better at low temperatures than CPO-based biodiesel. This is due to the lower concentration of fatty acids in the raw material.
There is currently no ongoing research into advanced biofuels in Peru, as indicated in the report.
“There is also no current policy to support research into advanced biofuels. FAS Lima is not aware of any announcements made by Peruvian airlines regarding the use of advanced biofuels in their operations,” states the USDA.
Source: Oils & Fats International
